Alshaya Group Makes E-Commerce Bet With Investment In Alabbar's Noon.com
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M.H. Alshaya Co., a seasoned MENA-based retail group, has invested an undisclosed amount in Noon.com, the region’s latest e-commerce venture backed by Mohamed Alabbar and Saudi Arabia’s Public Investment Fund, acquiring a “strategic stake.” In addition to getting on board as an investor, Alshaya is also set to become a seller on the Noon platform with this partnership, hence opening up access to a vast portfolio of its products covering fashion, health and beauty, home and lifestyle, among other categories, to the tech-savvy online customer base of the region.
With global retail franchise operator Alshaya making digital bets of its own to adapt to the changing retail landscape, its Executive Chairman Mohammed Alshaya notes that the partnership with Noon will complement their existing online channels. “We are impressed by Noon’s capabilities, and we are excited to partner with the Noon team to present a winning value proposition for the region’s online shoppers," he said, in a statement. "Our partnership with Noon will allow us to expand our customer base, reach new market segments, and participate in the next level of growth in regional e-commerce.” On his part, Noon founder Mohamed Alabbar said: “It is our privilege to partner with Alshaya, and give our customers access to Alshaya’s leading international brands. Noon brings a new business model for e-commerce, developing a strong supply chain that benefits regional businesses. We will work with the region’s leading brands and retailers to help them grow their business through Noon.”
Esanjo founder Omar Kassim, who was formerly the founder and CEO of JadoPado.com, which Noon acquired in May 2017, noted this development to be "massive" on his Twitter feed. When asked why, Kassim pointed toward the significance of having one of the region's largest retailers enter the e-commerce arena by partnering with an existing player in the space. Whether this e-retail strategy of Alshaya pays off, however, remains to be seen- Noon's launch is still pending, though it was originally unveiled in November 2016 as a US$1 billion e-commerce venture with plans to go live in January 2017. The latest statement says that Noon is set to launch later this year- so just keep your eyes peeled!